Average Balance Sheet Analysis
(dollars in millions)
For the Years Ended December 31,
2023 2022 2021
Average
Balance
Yield/
Rate Interest
Average
Balance
Yield/
Rate Interest
Average
Balance
Yield/
Rate Interest
Assets
Interest-earning assets
Cash and cash equivalents ................ $ 8,192 5.17 %$ 423 $ 9,279 1.89 %$ 175 $ 14,236 0.13 %$ 18
Restricted cash .................................... 250 7.80 %20 515 1.48 %8695 0.03 %NM
Other short-term investments ............. — — — — — — 176 0.12 %NM
Investment securities ........................... 12,938 3.47 %449 6,988 2.57 %179 8,713 2.09 %182
Loan receivables
(1)
Credit card loans
(2)(3)
..................... 94,205 15.33 %14,438 79,243 13.42 %10,632 69,365 12.57 %8,717
Private student loans ...................... 10,382 9.95 %1,033 10,240 8.11 %831 10,057 7.38 %742
Personal loans ................................ 9,011 12.83 %1,156 7,295 11.95 %872 6,945 12.64 %878
Other............................................... 4,713 6.92 %326 2,895 5.77 %167 2,054 5.57 %114
Total loan receivables......................... 118,311 14.33 %16,953 99,673 12.54 %12,502 88,421 11.82 %10,451
Total interest-earning assets ................... 139,691 12.77 %17,845 116,455 11.05 %12,864 112,241 9.49 %10,651
Allowance for credit losses..................... (7,936) (6,820) (7,351)
Other assets............................................. 6,938 6,070 6,237
Total assets
(4)
............................................ $138,693 $115,705 $111,127
Liabilities and Stockholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Time deposits.................................. $ 38,220 3.89 %$1,485 $ 23,988 2.02 %$ 484 $ 23,928 1.84 %$ 440
Money market deposits.................. 8,143 4.16 %339 8,453 1.67 %141 8,142 0.53 %43
Other interest-bearing savings
deposits......................................... 51,366 4.01 %2,062 44,276 1.43 %632 40,912 0.43 %178
Total interest-bearing deposits........... 97,729 3.98 %3,886 76,717 1.64 %1,257 72,982 0.91 %661
Borrowings
Short-term borrowings................... 44 10.21 %5225 0.70 %2 72 0.18 %NM
Securitized borrowings
(5)(6)(7)
......... 10,528 4.30 %453 9,060 2.41 %219 9,627 1.06 %102
Other long-term borrowings
(6)(7)(8)
9,090 4.43 %402 9,334 4.15 %387 9,888 3.75 %371
Total borrowings................................. 19,662 4.37 %860 18,619 3.26 %608 19,587 2.42 %473
Total interest-bearing liabilities .............. 117,391 4.04 %4,746 95,336 1.96 %1,865 92,569 1.23 %1,134
Other liabilities and stockholders’
equity
(9)
.................................................. 21,302 20,369 18,558
Total liabilities and stockholders’ equity $138,693 $115,705 $111,127
Net interest income ................................. $13,099 $10,999 $ 9,517
Net interest margin
(10)
............................. 11.07 %11.04 %10.76 %
Net yield on interest-earning assets
(11)
.. 9.38 %9.45 %8.48 %
Interest rate spread
(12)
............................. 8.73 %9.09 %8.26 %
(1) Average balances of loan receivables and yield calculations include non-accruing loans. If the non-accruing loan balances were excluded, there would not be a
material impact on the amounts reported above.
(2) Interest income on credit card loans includes $468 million, $365 million and $295 million of amortization of balance transfer fees for the years ended December 31,
2023, 2022 and 2021, respectively.
(3) Includes the impact of interest rate swap agreements used to change a portion of floating-rate assets to fixed-rate assets for the years ended December 31, 2023,
2022 and 2021.
(4) The return on average assets, based on net income, was 2.12%, 3.80% and 4.90% for the years ended December 31, 2023, 2022 and 2021, respectively.
(5) Includes the impact of one terminated derivative formerly designated as a cash flow hedge for the years ended December 31, 2023, 2022 and 2021.
(6) Includes the impact of interest rate swap agreements used to change a portion of fixed-rate funding to floating-rate funding for the years ended December 31, 2023,
2022 and 2021.
(7) Includes the impact of terminated derivatives formerly designated as fair value hedges for the years ended December 31, 2023, 2022 and 2021.
(8) Includes the impact of interest rate swap agreements used to change a portion of floating-rate funding to fixed-rate funding for the years ended December 31, 2023
and 2022.
(9) The return on average stockholders’ equity, based on net income, was 21.00%, 32.00% and 43.12% for the years ended December 31, 2023, 2022 and 2021,
respectively.
(10) Net interest margin represents net interest income as a percentage of average total loan receivables.
(11) Net yield on interest-earning assets represents net interest income as a percentage of average total interest-earning assets.
(12) Interest rate spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities.
-62-